No high is a high in a Bull market

The bearish possibility last week was completely negated as soon as Nifty crossed 5060 first and then 5170, closing well above these levels.

I have seen many chart patterns get repeated over a few months / years, and I have spotted a very similar pattern that occurred in August 2009. Nifty fell to 4350 levels in 2 successive weeks in August 2009 only to close near the highs in both weeks. The third week saw a breakout from these hammer candles, above 4578.8 and then Nifty travelled all the way to 5181.95 over the next 9 weeks.

A similar pattern has been created now, when Nifty fell to 4961 and 4967 in successive weeks and crossed the weekly hammer candle when it crossed 5139 on the first day of the week gone by and has not looked back ever since. A chart showing the similar patterns on weekly charts is shown. However, the markets are now at overbought levels, and if the same pattern is to be repeated, a small correction is due this week - expiry is a good trigger. As shown in the daily charts of August 2009 and current, I expect a dip to 5180 - 5220 at some point, maybe before expiry.

As long as 5150 - 5170 are held in the dip as a worst case, Nifty can resume its upward march. Likely targets -------5450 - 5545.

If and when (more of 'when' and less of 'if' Nifty does give a dip, I am sure, lot of people might start shouting about the end of the rally and will also start giving targets of 4650 and 4200.

However, options data for July suggest a pleasant surprise for bulls in July too.

STAY LONG FOR JULY AS LONG AS 5150 HOLDS.

I am expecting a similar pattern in the world markets - a dip and a rise to about 5% above current levels at least (DOW 10750, S & P 1150 to give some figures)